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Sales Promotion and Cooperative Retail Pricing Strategies AgEcon
Richards, Timothy J.; Patterson, Paul M..
Supermarket retailers make strategic pricing decisions in a high-frequency, repeated game environment both in buying and selling fresh produce. In this context, there is some question as to whether a non-cooperative equilibrium can emerge that produces margins above the competitive level. Supermarket pricing results from tacitly collusive equilibria supported by trigger price strategies played in upstream markets. Upstream activities are, in turn, driven by periodic retail price promotions. We test this hypothesis using a sample of fresh produce pricing data from 20 supermarket chains in markets distributed throughout the U.S. Our results support the existence of tacitly collusive non-cooperative equilibria in upstream and downstream markets.
Tipo: Working or Discussion Paper Palavras-chave: Dynamics; Game theory; Nash equilibrium; Perishables; Supermarkets; Tacit collusion; Trigger prices.; Demand and Price Analysis.
Ano: 2004 URL: http://purl.umn.edu/28542
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Response to Out of Stock Produce and its Underlying Economic Considerations AgEcon
Penn, Jerrod; Matopoulos, Aristides; House, Lisa.
The goal of this research is to investigate consumer response to out-of-stock product in the produce category. We do this by comparing results from a survey conducted in Greece and the United States to previous research on consumer response to out-of-stock situations for other perishable and non-perishable products. We further examined the underlying economic reasoning as well as the cultural and physical differences between the United States and Greece as explanations of different reactions. Out of Stock produce response proved different in produce than in other perishables and non-perishables. There is some evidence that produce does follow previous the suggested economic reasoning from the previous research, especially within transaction costs. Finally,...
Tipo: Conference Paper or Presentation Palavras-chave: Out-of-stock; Grocery; Perishables; Opportunity cost; Transaction costs; Agribusiness.
Ano: 2010 URL: http://purl.umn.edu/56487
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